Categories Earnings, Retail

Lululemon Athletica (NASDAQ: LULU) Q3 profit beats estimates, lifts FY19 forecast

Lululemon Athletica (NASDAQ: LULU) reported a 33% jump in earnings for the third quarter of 2019 helped by higher revenue as well as double-digital growth in the comparable sales. The results exceeded analysts’ expectations. Further, the company lifted its revenue and earnings guidance for the full year 2019.

Net income climbed by 33% to $126 million or $0.96 per share. Net revenue grew by 23% to $916.1 million. The analysts had expected EPS of $0.93 on revenue of $899.66 million. Total comparable sales increased by 16%.

The e-commerce revenue totaled $246.7 million, or 26.9% of total revenue, compared to $189.4 million or 25.3% of total revenue, in the previous year quarter.

Looking ahead into the fourth quarter, the company expects revenue in the range of $1.315-1.330 billion and earnings of $2.10-2.13 per share. The market analysts expect EPS of $2.13 on revenue of $1.32 billion for the fourth quarter. The comparable sales growth is anticipated to be in the low double-digits on a constant dollar basis.

For the full year 2019, the company lifted revenue outlook to the range of $3.895-3.910 billion from the prior range of $3.80-3.84 billion. The earnings guidance is raised to the range of $4.75-4.78 per share from $4.63-4.70 per share. The Street analysts predict EPS of $4.75 on revenue of $3.89 billion. The comparable sales growth is now anticipated to be in the mid-teens on a constant dollar basis.

Read: Chewy Q3 earnings review

The comparable store sales increased by 10% for the third quarter and direct-to-consumer net revenue jumped by 29%. Direct-to-consumer net revenue represented 26.9% of total net revenue compared to 25.3% for the third quarter of fiscal 2018. The company ended the quarter with 479 stores.

Also Read:  Why Shopify (SHOP) is an investment option you shouldn't ignore

Lululemon opened 19 net new company-operated stores in Q3 2019 including nine in the US, seven in Asia, and four in Europe. The company had one company-operated store closure in Canada. At the end of Q3 2019, the company had 479 total company-operated stores compared to 426 at the end of Q3 2018.

We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Earnings calendar for the week of Oct. 26

Bringing fresh optimism to the virus-hit market, U.S jobless claims for the week ended October 17 slipped to the lowest level since the onset of the pandemic, in a sign

Southwest Airlines (LUV) expects business travel to remain down well into next year

Shares of Southwest Airlines Co. (NYSE: LUV) were up over 2% in afternoon hours on Friday. The stock has gained 35% over the past three months. The company reported better-than-expected

Big banks have their eyes on second half of 2021

The biggest stimulus package of all time, which was meant to boost consumption has actually led to more deposits, inflating the size of banks’ balance sheets. A working paper shows

4 thoughts on “Lululemon Athletica (NASDAQ: LULU) Q3 profit beats estimates, lifts FY19 forecast

Comments are closed.

Top